Bank of England Governor Bailey: Long-Term Pressures Are Raising Government Debt

According to Jin10, Bank of England Governor Andrew Bailey said weak productivity and other shocks are among the reasons public debt has risen in developed economies, while rising public debt has in turn pushed up borrowing costs. He added that there are very, very serious structural challenges, and said population aging and the need for higher defense spending are also important factors. In recent months, government bond yields have risen sharply, with the U.K. 10-year gilt yield climbing to its highest level in nearly 20 years earlier this week and long-dated gilt yields reaching their highest level since 1998.